AICPA Internal Control Toolkit
Obtaining an understanding of a client's internal control is a necessary step in every audit. However, a 2018 Peer Review Program survey found over 40% of audits didn’t comply with AU-C 315 or AU-C 330 because auditors did not properly identify the risks of material misstatement through obtaining an understanding of their client’s controls.
To help you comply with requirements associated with internal controls, we've developed resources to help. Check this page often, as new resources will be posted.
You may think a smaller client has no controls, but that’s virtually never the case. Even the smallest entities have policies and procedures designed to prevent or detect and correct material misstatements. This aid will assist you in identifying controls at your smaller clients.
This PowerPoint presentation (with speaker notes) is designed to support firms as they train audit personnel on how to comply with the internal control requirements of AU-C sections 315 and 330.
Use this internal inspection aid to help you identify non-conformity with AU-C sections 315 and 330 requirements for auditors relative to understanding a client’s controls. The aid also provides guidance on how those findings should be addressed.
Based on Peer Review results, many auditors have been challenged in applying the requirements related to internal control in AU-C’s 315 and 330. Attend this webcast to learn about common missteps and how to avoid them in your practice.
- 5 missteps to avoid when evaluating internal controls, Journal of Accountancy, July 2019
- Quiz: How well do you know internal control auditing requirements?, Journal of Accountancy, July 2019